Comments for https://ctrader.com/products/2890

Thank you for your excellent and thoughtful question @TrendRiderFX . Transparency is important to me, so I will give you a direct, honest answer based on real market behavior and how this indicator is designed.

Where This Indicator Produces the Most False Signals

Like any technical tool, this indicator is not perfect. Based on extensive testing and user feedback, false signals occur most frequently in the following situations:

1. Choppy, Range-Bound Markets (Most Common)

When price is moving sideways with no clear direction, the swing detection algorithm will attempt to fit Elliott Wave structures and SMC patterns (CHOCH/BOS) onto random price fluctuations. This inevitably produces signals that fail quickly.

How to identify this: You will see CHOCH and BOS labels appearing frequently on nearly every swing, and the dashboard shows "Valid" wave counts while price remains flat.

1. Immediately Following a CHOCH (Change of Character) Label

The indicator correctly identifies potential trend changes, but in weaker trends, a CHOCH often turns out to be just a deep pullback rather than a true reversal. Entering immediately after a CHOCH without additional confirmation leads to false signals.

1. Weak BOS (Break of Structure) With Low Momentum

A marginal break of a swing point (e.g., closing 1–2 pips beyond a level) triggers a BOS label regardless of momentum. In low-volatility conditions, these weak breaks frequently reverse, producing false entries.

1. During Low Volatility / Compressed ATR

When the ATR is contracting and price action becomes tight, the indicator's swing sensitivity remains unchanged. This causes the system to treat small, insignificant price movements as meaningful swings, leading to unreliable wave counts and entry signals.

How to Minimize False Signals (Important)

The indicator includes parameters specifically designed to help you filter out these false signals:

Parameter	Recommendation
Swing Lookback	Increase to 80–100 in choppy markets
Min Progress %	Set to 15–20 to avoid premature entries
Max Progress %	Lower to 60–65 to avoid late entries
RSI Bullish Min	Increase to 55 (from default 40) for stronger momentum
RSI Bearish Max	Decrease to 45 (from default 60)

Additionally, I strongly recommend only taking signals when ATR is above its 14-period average — meaning volatility is sufficient to sustain a move.

Bottom Line

• ✅ Best performance: Trending markets with clear swings and expanding volatility
• ❌ Worst performance (false signals): Ranging, low-volatility markets with frequent CHOCH/BOS chatter

No indicator works perfectly in all conditions. This one is a powerful tool when used correctly, but like any system, it requires discretion and proper market context.

I encourage you to test it thoroughly during the trial period in both trending and ranging conditions. This will give you complete confidence before purchasing.

Thank you again for asking such a thoughtful question — it tells me you are a serious trader.